Most people are aware of their preferred Starbucks beverage, be it a strong dark roast coffee with an espresso shot or a tall flat white. With nearly 40,000 Starbucks outlets globally and approximately 17,000 situated in the U.S., countless patrons have their go-to orders ingrained in their memories, yet fewer are actually placing orders at the renowned coffee chain.
On October 30, 2024, Starbucks reported a 7% decrease in global same-store sales for the fourth quarter of 2024, citing “a significant decline in foot traffic” in North America—10% lower than the same period last year, marking the most challenging quarter since the pandemic-related shutdowns in 2020.
The coffee behemoth also decided to withdraw its financial outlook for the 2025 fiscal year as Brian Niccol, chairperson and CEO, highlighted essential changes that Starbucks is implementing, which will impact their profits in an effort to regain customers and boost sales figures.
In an official press release, Niccol noted, “It is evident we must radically alter our approach to reclaim our customers. ‘Back to Starbucks’ embodies this pivotal change. My experience tells me that by returning to our foundational identity and consistently providing an exceptional experience, our customers will return. We have a transparent strategy and are swiftly progressing to restore Starbucks’ growth.”
Niccol is an experienced figure in the restaurant industry, recognized for transforming Chipotle following food safety controversies and for rejuvenating Taco Bell’s public image. He stepped into the CEO role on September 9, 2024, succeeding Laxman Narasimhan, who served for less than two years.
During his inaugural earnings call, Niccol acknowledged the company’s underwhelming fourth quarter results but primarily focused on detailing the Back to Starbucks initiative, emphasizing alterations that prioritize customer satisfaction, making them feel appreciated and at ease in the coffee establishment.
Here are 7 strategies Niccol intends to employ to boost sales and regain Starbucks patrons
1. Enhance mobile ordering
Overloaded counters filled with mobile orders create stress for both customers and Starbucks staff. With mobile orders representing over 30% of their transactions in the U.S., Niccol stated they are making efforts to improve the app’s timing accuracy, ensuring customers are informed when their drinks are ready. Additionally, he plans to designate mobile order pickups within the establishment, allowing inside customers to more easily identify their orders.
2. Eliminate the extra fee for non-dairy milk
Starting November 7, 2024, patrons in U.S. and Canada company-operated stores will no longer incur an additional charge for personalizing their drinks with non-dairy milk.
In a press statement released on October 30, 2024, Starbucks revealed that substituting non-dairy milk—such as soy, oat, almond, or coconut milk—has become the second most popular customization request among customers, following the addition of an espresso shot.
The announcement highlighted that nearly half of the U.S. customers who modify their drinks in company-operated stores will benefit from a price reduction exceeding 10%.
The organization anticipates that despite potentially losing thousands in revenue due to this 10% reduction, the change will enhance customer appreciation, and the expected rise in loyalty justifies the expense.
“At the heart of the Starbucks Experience is the opportunity to customize your drink to your liking. By removing the extra charge for non-dairy milks, we are embracing the many ways our customers enjoy their Starbucks,” commented Niccol.
3. Write customer names on cups by hand
Starbucks plans to reinstate one of its most recognizable personal features by reintroducing handwritten names on its cups.
Over recent years, the handwritten names were substituted with printed names on receipts, eliminating one of the company’s original characteristics.
Even with the additional cost of markers, the firm believes that personalizing each cup by hand will enhance the customer experience.
“We are excited to bring back the Sharpies for our baristas,” Niccol stated. “This will give them the chance to add that human touch to every coffee experience.”
4. Reintroduce the condiment bar
Niccol informed analysts that the condiment bar would return in 2025 to alleviate some responsibilities from baristas and expedite service.
During the COVID pandemic in 2020, Starbucks relocated the condiment bars behind the counter.
Since then, customers wanting to add milk or sugar to their beverages—even a straightforward drip coffee—have needed to approach baristas directly.” If you order a brewed cup of coffee, the experience is quite rapid because we’ll simply hand it to you where you place your order, and then you can proceed to the condiment bar to tailor your coffee as you wish,” Niccol explained to analysts.
5. Enhance staffing
Starbucks has increased the average number of hours allotted for barista shifts. By providing additional shifts and more steady schedules, the company has reduced turnover and boosted retention.
Niccol mentioned in his corporate video that he aims to guarantee sufficient staffing in cafes during busy morning hours and “shoulder hours,” which are periods before and after peak times.
6. Reinstate the community coffee shop
In his video, Niccol underlined the necessity of providing customers with a communal space. Hence, the company intends to revert cafes to their earlier coffee house design.
Starbucks is also reviewing the cafe layout and aims to reintroduce more comfortable seating and amenities, allowing patrons to feel more at ease when they relax or work in their local cafe.
7. Streamline the menu
Niccol stresses that Starbucks should concentrate on simplifying their menu. He further states, “We are going to impose some constraints on certain customizations, as some of them, quite frankly, detract from the beverage.” Moreover, reducing the menu size will facilitate baristas in preparing drinks consistently and enhance service speed since they will have fewer recipes to memorize.
With these modifications, Starbucks is confident that customers will return to order their beloved beverages.
In the conclusion of his video, Niccol remarked, “By remaining committed to our core principles, taking care of both customers and the team, simplifying operations, consistently providing high-quality offerings, and effectively conveying our story, success will follow.”
